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Life of a Brokerage Firm “If it were easy, everyone would be doing it,” is the old adage when it comes to commodities trading and brokerage. Our work can be very rewarding but at the same time comes with a unique set of challenges that we all must overcome in our own ways, all the while trying to keep our sanity. The trading and brokerage business has changed greatly over the years as regulations have increased and technology has become a part of everyday life. The current state of the futures industry is quickly changing and this article series is…...

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Highlights and takeaways from the CopyBlogger Authority Rainmaker 2015 conference in Denver, CO. It was a useful conference focused on the full lifecycle of content marketing. I’d like to share a few takeaways with you. Focus on Creating Your Own Audience A key theme was building an owned audience. Too often, marketers rely on other platforms for audience — whether it’s a trade publication, an industry site, or a social media platform. We refer to the audiences on these platforms as “rented.” Relying on a rented audience is like building a house on rented land. Eventually, you’re going to lose the house. The…...

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In 2013, we posted a blog post titled, 5 Tips for Driving Conversions in B2B Email Marketing. To our delight, this post generated a lot of interest amongst our readers. As such, we’ve decided to revisit the email marketing topic and provide more tips for boosting success. Here goes! Tip #1: Initiate a Conversation In typical face-to-face interactions, there is a back and forth of dialogue and exchange of ideas. This same concept should hold true in your email marketing. But many marketers are delivering a one-way monologue, whereby they hit their contacts with general marketing messages at periodic points…...

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The Importance of Integrated Marketing in the Brokerage (or Any) Business Whether you’re a fan of the Kardashian family or not, you’ve gotta give one thing to them – they know how to market, and how to turn their name into a brand with a consistent integrated effect. Not everyone knows how to do that intuitively, but there are actually many things you can do – some quite easy – to make your brokerage recognizable to your prospect base. First, and foremost, make sure that everything you are doing that has to do with any form of firm communication has…...

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How reputation management works and why you need to work yours! I admit I was that mother that told her children, “It doesn’t matter what other people think about you. It just matters what you believe about yourself.” I was wrong. Perception lives in the minds of the people we encounter – our clients, colleagues, managers, brokers, etc. – and their perception of who we are and what we have to offer directly influences their willingness to give us what we want. Do your clients consider you trustworthy, knowledgeable and confident in your recommendations? Or, do they see you as…...

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The futures industry is ever evolving and in case you haven’t noticed there are fewer and fewer FCMs interested in taking on new GIB business. A myriad of items and issues are responsible for the change in appetite the FCM has for GIB business. In particular the increase in regulatory oversight and concern for exposure to fines and other sanctions have resulted in the FCM community stepping up their review process for new IB applicants as well as retention process for existing guaranteed IBs. The FCM business has not been the most profitable in the recent past as the…...

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I’ve met many traders, brokers, and introducing brokers having covered the derivatives arena for 30 years. Some have been memorable, some not. Typically why they are memorable is for a few reasons: a) performance, especially as a trader, b) what sets them apart, that is, what makes them special, especially as a broker, and c) keeping up the relationship, in other words, they continue to keep in touch even if they don’t see an immediate benefit. From a journalist’s point of view, brokers, large and small, are typically the easy people to access. They are happy – usually – to…...

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It’s a tough time to be a futures broker. Despite surviving the 1-2 punch of MF Global and PFG, markets have been difficult to predict and volumes haven’t fully bounced back. In managed futures, CTAs as a group have under-performed and while traditional wisdom says to invest in a manager during a draw down—it’s a tough sale even for the most experienced investor. While generally speaking, the rise of the stock market is good for our economy and a sign of a market rebound, it makes selling futures a harder proposition when low-cost, less-complex investment vehicles such as Stock Index…...

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With expanding areas of potential client pools and capital, commodity trading advisors (“CTA”) are often looking outside of their firms to tap into these untouched resources. To accomplish this, CTAs often contract with an introducing broker (“IB”) whose sole goal is to bring the CTA new clients. This article discusses the terms of the relationship and highlights some things all parties should be aware of. In order to facilitate an efficient and beneficial relationship between a CTA and placement agent, it is highly recommended that the parameters of relationship are memorialized in writing via a “Placement Agent Agreement.” These agreements…...

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As discussed in Part 1 of “Why Past Performance of a Conventional (60-40) Portfolio Is NOT Indicative of Future Performance”, the results of a conventional 60-40 portfolio over the last 30 years aren’t likely to repeat in the near future. Going forward, if the P/E ratio reverts to its long-term average of 16.4, corporate profits grow at their historical average of +4.70%, and dividends increase at the same rate as corporate profits (and the dividend payout ratio increases to its long-term average), stocks will appreciate at just 7.05% per year over the next decade. Here’s the arithmetic. Future returns from…...